what we do
Our focus is on the development of proprietary geodesic models that characterize the behavior of leveraged long/short ETFs in pairs trades using first principles of Hamilton-Lagrange-Euler mechanics. Because of tracking errors & daily compounding phenomena, equal weightings of leveraged ETFs in a pairs trade are virtually never 50-50. Daily data & graphics will show subscribers where neutral pair weightings have moved along the path of the pairs geodesic thereby providing multiple market direction & re-balance indicators.
SDS-SSO Model Update - August 4, 2009
Dear Blogger, thank you! again for subscribing to the S&P 500 long/short ETF Model and welcome to new members who just joined and new list subscribers. today's analysis is available for download:
ignore the missing data error message that may pop-up when opening up the file. Excel for Windows looks for metadata that Excel for Mac doesn't generate.
if you ever misplace your login, send me a message using the email you originally provided when subscribing through paypal. visit the blog for an archive of all subscriber updates and alerts. the archive is search-able and comments can be posted by everybody. | | | Today's Commentary
not much changed today with the S&P 500 index or the geodesic model. the only take away was that the index started the day reasonably on the downside and managed to eek out a +0.30% finish. buyers maintained the S&P 500 above the 1000 mark for the second day in a row.
no question this market is on a tear. the lull in the activity today was likely an opportunity for some to get in the market who have not been able to yet while the bulls were taking a rest. the model indicators say this is the strongest sentiment in scale the market has seen up or down in several years. the rapid rate at which we got here has leveled off a bit but the temperature of the market is still boiling, so to speak. no indications this will significantly change for the foreseeable future.
disclosure: i am currently 60% SSO & 40% SDS. for the remainder of the week, i plan to let the pair naturally respond (adjust) to the market without forcing a changes to weights. the pair weights will adjust on their own. however, like today, i'll take some opportunities to add to the pair using the weights at the time of purchase. for example, if the weighting is 63% SSO & 37% SDS, i will buy shares of both ETFs at that weights.
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Disclaimer
Equity Informatics is a developer and service provider of proprietary financial equity pricing models & trading methods. The company familiarizes subscribers with the basic thesis of our models, provides subscribers with daily neutral pair weightings and methodologies on how to use the data as intended. subscribers shall not share any information obtained from equity informatics with any other party. use of these services are granted only to and intended for the benefit of the subscriber. Equity Informatics does not offer the sale of equities nor do our trading models constitute trading advise. It is incumbent on potential clients to perform due diligence and seek a professional financial adviser to help you determine whether subscribing to the company's services are suitable for your financial situation and level of risk. No guarentees of performance are expressly or implicitly offered nor does Equity Informatics guarantee the accuracy of market information used to provide model data to our client. equity informatics does not assume responsibility for lost principal, lost gains or tax consequences.
Copyright (c) 2009 Equity Informatics, LLC. All Rights Reserved.
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